Business News from Hungary by Peterka Partners
Parliament rubber-stamps KATA Act, upending approx. 350.000 taxpayers and prompting wide-spread protests
Within one day, with no public consultation or information, Hungary’s Parliament voted to exclude approx. 80% of current KATA taxpayers from this advantageous regime from 1 September 2022. The KATA regime, being a monthly lump-sum tax of HUF 50.000 (approx. EUR 125) irrespective of income and boasting little to no administration needs, would no longer be available for B2B relations, only to B2C transactions. Experts say that those excluded hereby may expect their tax burdens to increase at least twofold.
Government introduces energy state of emergency
Citing events shaking the European energy market to its core, the Hungarian government has drawn up a 7-point action plan to prepare for the difficulties ahead. The planned measures include an export ban on energy carriers and firewood, and phasing out the highly-praised overhead costs (natural gas and electricity) limitations for those consuming “excessively”. According to the government official, the market prices would be around 10 times more than those of the subsidized ones.